Stagflation—inflation coupled with stagnation— has defined the Iranian economy since the implementation of US extraterritorial sanctions on the country in 2011.
The inflationary environment has become a constant feature of the economy since the end of the 1980-88 Iran-Iraq war. Since the ceasefire, there have been only two years when Iran did not experience double-digit inflation, as outlined in the graph below.
High inflation leads to many economic ills, crucially a decline in purchasing power and a concomitant shrinking of the middle class. Studies by the Majles Research Center indicate that the purchasing power of the average Iranian family in 2020 was...
Registering helps us deliver original coverage of the region's most important issues.